Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 Ib. capacity bike trailer for anything weighing up to 10 Ibs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service. Complete the table below for the parcels market. Price Parcels and Packages TR MR | TC MC MR- Profit MC 100 1,150 90 1,650 10 70 2.150 10 2,850 5,850 7,850 90 4,500 80 100 8,000 | 10,500 50 12,000 30 3,150 10 20 12,500 10 3,650 10 0 12,000 -10 4,150 10 -20 7850 10,500 -30 4,650 10 -40 8,000 -50 5,150 10 -60 2850 4,500 -70 5,650 10 -80 -1,150 60 2,650 10 70 60 150 40 200 50 8850 300 350 30 20 450
Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 Ib. capacity bike trailer for anything weighing up to 10 Ibs. As a way to introduce the new package service when you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service. Complete the table below for the parcels market. Price Parcels and Packages TR MR | TC MC MR- Profit MC 100 1,150 90 1,650 10 70 2.150 10 2,850 5,850 7,850 90 4,500 80 100 8,000 | 10,500 50 12,000 30 3,150 10 20 12,500 10 3,650 10 0 12,000 -10 4,150 10 -20 7850 10,500 -30 4,650 10 -40 8,000 -50 5,150 10 -60 2850 4,500 -70 5,650 10 -80 -1,150 60 2,650 10 70 60 150 40 200 50 8850 300 350 30 20 450
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Seven years ago, you started a crosstown delivery service. The service is an environmentally friendly business and, given all the traffic congestion, you are also the fastest service in the city since your entire crew are bicyclists. You have two types of
service. You have a small parcel service for anything that is flat and measures less than 11x17. You have a package service using a 100 lb. capacity bike trailer for anything weighing up to 10 Ibs. As a way to introduce the new package service when
you implemented the small package service, you charged the same price for packages as parcels. You are now wondering if you should charge different prices for the parcel and package service.
Complete the table below for the parcels market.
Parcels and Packages
MC MR- Profit
MC
Price
TR
MR TC
| 100
1,150
90 1,650 10
2,150 | 10
2,650 10
3,150
10
2,850
| 5,850
4,500
8,000
10,500 50
12,000 | 30
90
80
100
70
60
70
150
40
7,850
60
200
10
20
50
12,500
10
3,650
8850
12,000 -10 4,150| 10| -20
10,500 -30 4,650 10
-50 5,150 10 -60
-70 | 5,650 10
300
7850
30
350
-40
| 8,000
4,500
20
2850
450
-80
-1,150
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